Retail stocks get slammed after more poor results raise doubts about holiday sales

NEW YORK, N.Y. – Sharp declines in retailers were dragging the stock market lower in early trading as investors worry that holiday sales could slump.

The market is closing out a dismal week and is headed for its first weekly loss after six straight weeks of gains.

Investors punished retail stocks Friday after another department store chain, Nordstrom, missed earnings estimates and cut its forecast. Nordstrom sank 17 per cent. Macy’s also delivered disappointing results this week.

The Dow Jones industrial average was down 33 points, or 0.2 per cent, to 17,414.

The Standard & Poor’s 500 index lost four points, or 0.2 per cent, to 2,041. The Nasdaq composite fell 25 points, or 0.5 per cent, to 4,979.